LePage said benefit debit cards, also known as EBT cards, are designed to help needy Mainers pay for food and other necessities. However, the report found the cards are being used in places they shouldn't be.

The Department of Health and Human Services looked at EBT card activity over a three-year period.

According to the report, there were 1.7 million transactions during that time. Among them were 3,700 so-called questionable transactions traced to bars, smoke shops and a Portland strip club.

Even though the percentage of alleged fraud represents a mere two-tenths of 1 percent, the LePage administration said that any and all fraud should be investigated.

The governor's report showed that PT's Showclub, a Portland strip club, had eight so-called questionable transactions made with EBT cards during the three-year period studied.

While the club manager wouldn't allow cameras inside the club, he said there is an automated teller machine where customers can get cash. He said what those customers do with the money isn't his concern.

A similar story was heard at the Griffin Club, a local sports bar in South Portland.

"How am I supposed to stop someone? Am I supposed to be back there bartending, yelling, 'Hey, you at the ATM, is that an EBT card?'" Griffin Club representative Scott Parker said.

LePage and Democratic leaders have said, if verified, fraud, even this small, should be prosecuted.

"I am mad. If they're going to go after me, that's ridiculous. They can't go after us for no reason. It's not like I told the person, 'Hey, go over there with your card, get some money out, and buy beer from me,'" Parker said.

Officials with the Department of Health and Human Services said EBT cards are loaded with cash to be used for food, housing, clothing and even alimony. Recipients can withdraw cash like a regular bank debit card, but they're not supposed to withdraw it at certain establishments like strip clubs, casinos or bars.

Joe's Smoke Shop in Portland was also on the list, with the most, 586, questionable transactions, according to data compiled. Nobody at Joe's Smoke Shop were available for comment.

Even though the state knows where the cards were used, they don't know what was purchased.

Back at the Griffin Club, Parker said that's not his problem.

"It's like you give a child a candy bar and tell them they can't eat it, they're going to eat it," Parker said. "You're going to give someone this cash on this card. They're going to use it any way they want to."

Jennifer Wallace was at the Griffin Club on Wednesday. As a taxpayer, she said she's upset the money designed to help those who are struggling is being misspent.

"It's kind of upsetting if I'm working hard and then someone that doesn't work, coming in and getting beer or cigarettes with my money. Basically, it's my money. It's all our money," Wallace said.

DHHS officials said they're evaluating all of their options to ensure benefits are used as intended within the program.